The savings problem

[Casdinyard]

There has been extensive talk about how social security systems around the globe are having issues due to declining birth rates as well as a decline in the quality of employment for younger generations.

But another less often talked about issue is that almost nobody is able to make savings anymore.

Think about it. We all know at least some boomers. Most of them bought a car in their teens, a house in their thirties, went on frequent vacations and still even with all that were saving money beyond just for retirement savings.
Since that time, wage growth had stagnated, house prices have skyrocketed, and the purchasing power of the average salary has been going down.



So aside of the social security bubble potentially bursting in the future, there's also a bigger underlying issue.
Purchasing power has only been getting worse from generation to generation, and thus being able to make any savings is already a distant dream for most. Younger people just keep working more for less, to s point now where mostworking people can't put even a single dollar aside.

Could there be a solution for these issues? Economists have long argued about the strengths and failures of our economic system, but alas it appears as though "trickle down economics" has failed humanity.

So, do you agree that radical changes are needed?

Which is why I think an economic crash is nigh and necessary at this point. And while it's definitely gonna cause a lot of death and starvation amongst those below the poverty line, I see this as a reset that would allow people to have the same amount of purchasing power as our forefathers did in the past. See, the wage gap is increasing yearly and there's nothing that we can't do about it. House prices are skyrocketing, making it impossible for us to even dream of owning our very own houses. The final straw for me is the fucking payment arrangement pizza where you can pay your pizza in installments, at this point I'm sure we're already in the end times of the economy. Soon as a crash happens houses will be dirt cheap, jobs are going to be easier to come by and would pay comfortable rates, and so on.

I don't mean to be the end of the world guy of this forum but as it stands today it seems as though that's what's being laid in front of us. The good thing is that if we make it out alive we're going to experience one of the most fulfilling economic times in the history of man. So I guess it's those instances where you use radical solutions for radical problems lol.

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[edy_58]

However, for those who are single or unmarried, at least they can still make a plan to save so that it won't be so difficult to support their own family when they are married and ensure that their partner also has a job so that the level of income they get later can be more and they don't have to borrowing to cover the family's basic needs in life.

It is quite difficult to keep a job for a family member who has most responsibilities for the kids. Keeping the job requires hiring someone who will watch a newborn family member and this makes the expenses bigger. Sometimes it is cheaper to take care of a baby by yourself then to hire a professional babysitter. That’s why the situation, where two adults meet each other and start family, when both of them are working and having stable salary, is close to impossible, at least for the first time when they will have an increase in family.

For couples who both work, it will be very difficult to take care of their family if their child is still a toddler and they have to hire someone else to take care of their child, of course they have to pay for the worker and if each partner really understands and chooses to take care of the family themselves. then the couple stops working and taking care of their family and has to look for additional income from their husband to increase their income because their partner is the only one who works.

Before thinking about adding family members, it is very important for couples to have a plan to have a stable income so that they can meet their family's needs and still be able to save for their other needs.

[MarjorieZimmermanGinger]

For couples who both work, it will be very difficult to take care of their family if their child is still a toddler and they have to hire someone else to take care of their child, of course they have to pay for the worker and if each partner really understands and chooses to take care of the family themselves. then the couple stops working and taking care of their family and has to look for additional income from their husband to increase their income because their partner is the only one who works.

Before thinking about adding family members, it is very important for couples to have a plan to have a stable income so that they can meet their family's needs and still be able to save for their other needs.

Now there are child care centers that can be used by married couples or they can also entrust their children to one of the parents. Conditions like this have been going on for a long time, even my younger siblings and I were entrusted to our grandmother because our parents were busy at work. If we are looking for a nanny, we might need money, but in my opinion the cost for a nanny is not too big and expensive because now there are many people who want to look after children. Someone who has the intention to improve their level of income from work will definitely have a way, unless they themselves are lazy and don't want to work and are looking for a solution.

Children are also a way that God has given to increase sustenance for parents and you don't need to worry that having several children will make life more difficult. When the child is still small, expenses are not too large and parents must be able to save in this condition because when the child is an adult and has entered college the expenses will be much more.

[mirakal]

The reality is, people do not actually rely from saving anymore, but by taking a loan as they get instant approval most especially if they present good and stable sources of income. With that, the essence of saving most especially for the younger ones have started to vanish until out of 10 workers, only 1 is able to do so.

That’s how fast and influential the changes are. If there are no instant loan offers, they will be encouraged to work hard and save more. But this is the reality now, people are dependent already on what is instant than taking a long process like saving for their future.

[EarnOnVictor]

However, for those who are single or unmarried, at least they can still make a plan to save so that it won't be so difficult to support their own family when they are married and ensure that their partner also has a job so that the level of income they get later can be more and they don't have to borrowing to cover the family's basic needs in life.

It is quite difficult to keep a job for a family member who has most responsibilities for the kids. Keeping the job requires hiring someone who will watch a newborn family member and this makes the expenses bigger. Sometimes it is cheaper to take care of a baby by yourself then to hire a professional babysitter. That’s why the situation, where two adults meet each other and start family, when both of them are working and having stable salary, is close to impossible, at least for the first time when they will have an increase in family.

For couples who both work, it will be very difficult to take care of their family if their child is still a toddler and they have to hire someone else to take care of their child, of course they have to pay for the worker and if each partner really understands and chooses to take care of the family themselves. then the couple stops working and taking care of their family and has to look for additional income from their husband to increase their income because their partner is the only one who works.

Before thinking about adding family members, it is very important for couples to have a plan to have a stable income so that they can meet their family's needs and still be able to save for their other needs.

A whole lot is needed financially if it's about a family, and the size of the family matters as well. Some families would have 5 children, this is in every country where birth control is not enforced, yet many survived without financial issues, and if they could survive, I think that no one should have an excuse about this, or else, they should "cut their clothes according to the clothes" and do not birth more children than necessary. They should understand their income limits, plan around it and perhaps add more hustling if that is what will save the day. They should know that it is not about who will be with the child/children alone but how they provide for every facet of their needs. The bills have to be paid one way or the other and I do not see it as the best option for one of the parents to stay idle and be taking care of the children while the other works out his life. Because if the two are working, particularly if they are well-qualified for a high-paying job, it would be better. With that, they can pay the service of the caregiver of their child/children and still have more to save. All these are calculations and it has to be priorities unless either of the parents are so rich to the extent that all bills can be sorted out without any issues.

Still, it is so unadvised for one to be practically redundant, what if something bad happens to the breadwinner of the family? I will never subscribe to that unless she just didn't secure a job despite all the couple's efforts. Bills payment is a must whether we like it or not, and the more we pay it with a low-paying job, the more it can be frustrating which is what takes me to the point that all families must ensure that they are financially free. If not, they should not rest but strive more to secure a better job or add more earning means to the one(s) they have. People often complain really, and I know a whole lot that will be in their comfort zone and continue to complain, but bro, it doesn't work that way, you push it before it moves, not otherwise unless you are just lucky. If both couples can be earning well, I can assure you that there will be no issues in the family regarding finances and more money will also be available to either save, invest or use to build their house or acquire properties. And life goes on. It is only the lazy or health-challenged people that should panic, once we can think and make the necessary moves, I am sure that our lives will not remain the same.

[carlfebz2]

The reality is, people do not actually rely from saving anymore, but by taking a loan as they get instant approval most especially if they present good and stable sources of income. With that, the essence of saving most especially for the younger ones have started to vanish until out of 10 workers, only 1 is able to do so.

That’s how fast and influential the changes are. If there are no instant loan offers, they will be encouraged to work hard and save more. But this is the reality now, people are dependent already on what is instant than taking a long process like saving for their future.

Well this is actually true and precise on which people would really be that taking up this method rather than on saving it up but this would really be actually that depending on a certain individual because not all would really be liking on getting up some loan as they dont really like on engaging through it but rather they would really be liking on having no debts which it isnt really that bad either.
But i do definitely agree into the idea that people would really be just simply skipping out on making some savings and would really be just simply taking up those options rather than on
trying out to accumulate fiat as savings which it would really be that a long term process on which i do agree into this point plus you wont really be able to easily do it
considering on different factors that do really affect out on how you would really be able to do such thing.

[Dunamisx]

It's very easy to spend money we earned than saving them because we cannot be completely done with budget needs, however, there are wants and needs from our budget plans, we must also administer the way to properly manage our asset in other not to waste them on what are not going to be profitable on us, another thing is to help the source to our income by making efforts on additional source in other to have alternative or backup, so that the income will be sufficient enough for both savings and expenses.

[Lorence.xD]

The reality is, people do not actually rely from saving anymore, but by taking a loan as they get instant approval most especially if they present good and stable sources of income. With that, the essence of saving most especially for the younger ones have started to vanish until out of 10 workers, only 1 is able to do so.

That’s how fast and influential the changes are. If there are no instant loan offers, they will be encouraged to work hard and save more. But this is the reality now, people are dependent already on what is instant than taking a long process like saving for their future.

Well this is actually true and precise on which people would really be that taking up this method rather than on saving it up but this would really be actually that depending on a certain individual because not all would really be liking on getting up some loan as they dont really like on engaging through it but rather they would really be liking on having no debts which it isnt really that bad either.
But i do definitely agree into the idea that people would really be just simply skipping out on making some savings and would really be just simply taking up those options rather than on
trying out to accumulate fiat as savings which it would really be that a long term process on which i do agree into this point plus you wont really be able to easily do it
considering on different factors that do really affect out on how you would really be able to do such thing.

Saving and applying for loan are both having its own pros and cons.
With saving, everyone is allowed to save. However, the amount of money will be limited to the amount you saved for a period of time before you needed it. With savings, it is accessible whenever you will want to unlike with Loans which will quite take a while with approval and releasing of money. Loan or borrowed money will also have its interest rate which is a downside to some people but that is of course for urgency and convenience with huge amounts of money to be borrowed. I guess it depends on where you plan to use it. If it is for future investments and businesses then a Loan could give you a decent amount to support that instance. If it is for personal "wants" then saving will be a good alternative. And with urgency both could be applicable depending on which would be more accessible on your end.

Unfortunately, loans are limited to the mount you can provide with your salary. Interest rate will also be quite of a burden given thaat some loans are having high rate of interest. But I would agree this would be a better option especially for investment purposes. And if it happened to be a profitable one such as with apartments, investment itself will pay the interest for you and that will be a cycle afterwards. This is what businessmen do in my country but ofcourse will not always be in accordance with our desires; if that thing where your loaned money will be used, won't generate enough money to cover your monthly payment, then that is where problem could take place.

[letteredhub]

It's very easy to spend money we earned than saving them because we cannot be completely done with budget needs, however, there are wants and needs from our budget plans, we must also administer the way to properly manage our asset in other not to waste them on what are not going to be profitable on us, another thing is to help the source to our income by making efforts on additional source in other to have alternative or backup, so that the income will be sufficient enough for both savings and expenses.

Theres a truth some many of us today are yet to come to reality with, which is, this world is not going to get any better than it were yesteryears not minding the economic plans and strategies governments of the world may want to sell to us. People always talk about multiple streams of income and am not excluded in that group that always clamour for multiple streams of income making but in actuality it's also difficult to have a multiple source of income as the capital to building this sources are not available. In some societies a large number of people are battling just to have a three square meal for the day just for daily survival and you will wonder where are we really heading to.

[Dailyscript]

Its hard to make savings when you are earning money and cannot cover your total expenses for the month. When we end up having debts or more things to take care of before the month ends, how do you expect the masses to save? My friend would always say that the only people who save are those who have had enough to cover their expenses and still have more left in their hands. Currently, I cant remember the last time I saved. However, I prefer investing my money instead of saving it. I dont know if this is a terrible idea since there are no emergency funds to look up to in case anything goes wrong in the future.

[Abu-Naim]

It's very easy to spend money we earned than saving them because we cannot be completely done with budget needs, however, there are wants and needs from our budget plans, we must also administer the way to properly manage our asset in other not to waste them on what are not going to be profitable on us, another thing is to help the source to our income by making efforts on additional source in other to have alternative or backup, so that the income will be sufficient enough for both savings and expenses.

Exactly, knowing the difference between wants and need is very important when you are trying to save some money; you will be overlooking your wants and focus only on the needs so as to save some funds for future. To achieve that, you have to avoid peer pressure because that is one of the main reason young people don't save money, they will always be looking at their colleagues so as to have all the have as well.

You also need another source of income, depending only on your salary cannot make you become rich, it will always be either you are satisfied with what you have, or the money will not be enough for your needs, because of that, you need extra source of income to be able to save and plan for your future.

[Myleschetty]

The reality is, people do not actually rely from saving anymore, but by taking a loan as they get instant approval most especially if they present good and stable sources of income. With that, the essence of saving most especially for the younger ones have started to vanish until out of 10 workers, only 1 is able to do so.

That’s how fast and influential the changes are. If there are no instant loan offers, they will be encouraged to work hard and save more. But this is the reality now, people are dependent already on what is instant than taking a long process like saving for their future.

You say that the value of savings is disappearing among the population, especially among the youth, and I think that the economy is not helping this situation, but if there's a will, there's a way. People need to get a financial education and read books that help them in their jobs. Because most of these problems arise because people don't distribute their income properly and leave expensive items for the future.

[franky1]

Its hard to make savings when you are earning money and cannot cover your total expenses for the month. When we end up having debts or more things to take care of before the month ends, how do you expect the masses to save?

the first issue is people spend first, then look at their bank account near the end of the month.. and react after the fact
the first change people need to make is plan at the start of the month, before they spend.
many people are happy to have their pants pocket wallet contain multiple loyalty cards, credit cards. but they only have one bank account
they are failing because they think if they spend, they can save via discounts/loyalty points/cashbacks but they then spend the rewards/accumulations too before the end of the month, thinking they have won/achieved sucess

if you instead replace the 6 credit/loyalty cards with 6 debit cards. where you budget a spending plan. EG a grocery budget in a grocery debit card whereby only having a weekly deposit from income account to grocery account means you have to only buy X groceries or the card gets declined
it pushes you to stay within grocery budget without eating into your budget for clothing/kids school stuff/transport
..
if you just rely on one card for everything. people overspend on groceries by seeing the whole income as available.. which then means they dont have the money for clothing or kids school needs
so the first lesson is budget amounts for different purposes and stay in that budget. mainly by splitting the income over different cards for different purposes and only use a specific card for a specific purpose to avoid eating into the other purpose budgets

My friend would always say that the only people who save are those who have had enough to cover their expenses and still have more left in their hands.

this again is about pre-planning. when accounting/budgeting their bills expenses. then organising what to do with whats left AT THE START OF THE MONTH before spending it

Currently, I cant remember the last time I saved. However, I prefer investing my money instead of saving it. I dont know if this is a terrible idea since there are no emergency funds to look up to in case anything goes wrong in the future.

you dont need to constantly "save". saving is not about wealth accumulation. its about having ease access rainy day fund to avoid needing to take out a loan to cover an incident. basically becoming your own bank to secure you in dire times. instead of relying on a bank to bail you out and then have to repay them twice as much..

a trick to do this is simple
think up a possible incident cost that could occur. pretend it just did happen this hour. pretend you took a loan to cover it. and now calculate how much you can afford to pay it off ASAP. and now budget to set aside that repayment in a account you own. meaning when the event does happen in the future. you then have that rainy day account fund to cover it without a loan when it actually occurs

[Zanab247]

It's clear that saving money has become harder for many especially with rising living costs and stagnant wages. People are working more but struggling to set aside any savings. There's a need for changes whether it's better job opportunities, affordable housing or other policies that can make things easier for everyone. It's a complex issue but acknowledging the problem is a step toward finding solutions right?

I guess the high cost of commodities that is making people not to be able to save the way they were saving money to buy lands and business without any fear of how are they going to succeed till the investment start bringing profits to them to recover their capital.

Even some companies that use to pay their workers with huge amount of money has reduced their payment and is making some workers not to have a good saving from their working place base on some other things they are spending their money to live a good life and to make their family safe in this global inflation.

[snowpega]

It's very easy to spend money we earned than saving them because we cannot be completely done with budget needs, however, there are wants and needs from our budget plans, we must also administer the way to properly manage our asset in other not to waste them on what are not going to be profitable on us, another thing is to help the source to our income by making efforts on additional source in other to have alternative or backup, so that the income will be sufficient enough for both savings and expenses.

Actually, inflation makes saving nearly impossible for poor people to either they meet their family needs or either they save money for future purposes The best thing is that if anyone has sufficient funds to start multiple businesses they should start it because when money starts coming from different sources it will be easy to meet family need along with they can do savings easily.

Cash flow gives confidence to any person and that confidence can help him to grow easily.

[Gladitorcomeback]

The reality is, people do not actually rely from saving anymore, but by taking a loan as they get instant approval most especially if they present good and stable sources of income. With that, the essence of saving most especially for the younger ones have started to vanish until out of 10 workers, only 1 is able to do so.

That’s how fast and influential the changes are. If there are no instant loan offers, they will be encouraged to work hard and save more. But this is the reality now, people are dependent already on what is instant than taking a long process like saving for their future.

You say that the value of savings is disappearing among the population, especially among the youth, and I think that the economy is not helping this situation, but if there's a will, there's a way. People need to get a financial education and read books that help them in their jobs. Because most of these problems arise because people don't distribute their income properly and leave expensive items for the future.

I think the value of saving is not disappearing in youth because now a days you will have seen that people save more often after which they initiate investment. In present age there is a limited job opportunities as a result of which people prefer investment which can make their future prosperous.

Those who don't know the value of saving cannot realize that how to spend money with planning. They spend huge money without thinking about it so they regret for it in future and then they want to make saving and investment but they are unable to do so therefore make a plan on time and get financial education that can help you to spend well and save more.

[Etranger]

There are really indeed life situations on which it is really that inevitable for you to avoid on which you dont really have no choice but to sacrifice one of those things just for you to save up money.
Just like on the situation you have pictured out on which there's no way that you could really be able to work well if you do have a newborn baby on which having both husband and wife
which you do have your own jobs would be an advantage but due to that condition then one of you would really be needing to give up on which it would be usually your wife would be the ones who
would really be giving up their job just to focus out on babysitting or taking care of it rather than on getting a maid.If your salary could be able to patch up then it might be
considered on getting one and proceed but well it would really be just that depending on you.

For couples who both work, it will be very difficult to take care of their family if their child is still a toddler and they have to hire someone else to take care of their child, of course they have to pay for the worker and if each partner really understands and chooses to take care of the family themselves. then the couple stops working and taking care of their family and has to look for additional income from their husband to increase their income because their partner is the only one who works.

Before thinking about adding family members, it is very important for couples to have a plan to have a stable income so that they can meet their family's needs and still be able to save for their other needs.

In Switzerland, for example, the necessity to hire a babysitter becomes an obstacle and even a reason for being child free. Because a couple usually has to pay almost whole salary which one of them makes to afford a nanny. Often young adults don't want to sacrifice all of their income just to give it away to another person. And they choose to continue working and living a life without such a responsibility as a baby. I find it rather sad, honestly. Because most of them regret not having kids when they grow older. However, I can understand that reason, because the opportunity to make and to save money is very important for a self esteem.

[franky1]

In Switzerland, for example, the necessity to hire a babysitter becomes an obstacle and even a reason for being child free. Because a couple usually has to pay almost whole salary which one of them makes to afford a nanny.

whole salary nanny is usually min wage salary, so the childs parents prefer to start having kids when in a career earning 2x salary each, meaning 4x min wage household to afford the 1x salary for part time childcare

Often young adults don't want to sacrifice all of their income just to give it away to another person. And they choose to continue working and living a life without such a responsibility as a baby. I find it rather sad, honestly. Because most of them regret not having kids when they grow older. However, I can understand that reason, because the opportunity to make and to save money is very important for a self esteem.

many people have this in their minds when they are late teens early 20's living on minimum wage. they either choose to be stay at home parent or dont have kids until they have a career.
when they have a career earning 2x+ of min wage then they start thinking of starting a family. which is why most people dont start a family until late 20's early 30's

many women are lucky enough to have their family (childs grandparents/uncles, aunts) to help reduce the costs of child care. and many governments have welfare schemes of child care vouchers. thus giving as much opportunity to work and have a family

yes raising kids aint cheap, but people still have kids.

[dunfida]

It's very easy to spend money we earned than saving them because we cannot be completely done with budget needs, however, there are wants and needs from our budget plans, we must also administer the way to properly manage our asset in other not to waste them on what are not going to be profitable on us, another thing is to help the source to our income by making efforts on additional source in other to have alternative or backup, so that the income will be sufficient enough for both savings and expenses.

Exactly, knowing the difference between wants and need is very important when you are trying to save some money; you will be overlooking your wants and focus only on the needs so as to save some funds for future. To achieve that, you have to avoid peer pressure because that is one of the main reason young people don't save money, they will always be looking at their colleagues so as to have all the have as well.

You also need another source of income, depending only on your salary cannot make you become rich, it will always be either you are satisfied with what you have, or the money will not be enough for your needs, because of that, you need extra source of income to be able to save and plan for your future.

Everything should really be moderation and in balance, once you do skip out this thing into your mind then you would be messing up everything.  

People normally be saving up money for the future on which they would really be having that kind of default thinking but due to those life situations and conditions on which
you would really be ending up on saving up unwisely specially if you are really that focusing that much on spending on things which are shit then you would
really be ending up on a shitty situation. This is something that you should really be avoiding in the first place.

You should know on how to save because life situations could really be having those unexpected events on which it would really be pertaining on
financial back up and this is where savings would really be working on.

[romero121]

There are really indeed life situations on which it is really that inevitable for you to avoid on which you dont really have no choice but to sacrifice one of those things just for you to save up money.
Just like on the situation you have pictured out on which there's no way that you could really be able to work well if you do have a newborn baby on which having both husband and wife
which you do have your own jobs would be an advantage but due to that condition then one of you would really be needing to give up on which it would be usually your wife would be the ones who
would really be giving up their job just to focus out on babysitting or taking care of it rather than on getting a maid.If your salary could be able to patch up then it might be
considered on getting one and proceed but well it would really be just that depending on you.

For couples who both work, it will be very difficult to take care of their family if their child is still a toddler and they have to hire someone else to take care of their child, of course they have to pay for the worker and if each partner really understands and chooses to take care of the family themselves. then the couple stops working and taking care of their family and has to look for additional income from their husband to increase their income because their partner is the only one who works.

Before thinking about adding family members, it is very important for couples to have a plan to have a stable income so that they can meet their family's needs and still be able to save for their other needs.

In Switzerland, for example, the necessity to hire a babysitter becomes an obstacle and even a reason for being child free. Because a couple usually has to pay almost whole salary which one of them makes to afford a nanny. Often young adults don't want to sacrifice all of their income just to give it away to another person. And they choose to continue working and living a life without such a responsibility as a baby. I find it rather sad, honestly. Because most of them regret not having kids when they grow older. However, I can understand that reason, because the opportunity to make and to save money is very important for a self esteem.

Raising kids is not an easy thing, but this is manageable when both are working. For the first three years, it used to be difficult. Why don't the father or mother take responsibility for taking care of the child and the other take responsibility for the financial needs through the job? This means a family gets fulfilled, and there is no need to spend much on a nanny or babysitter. When we want our lives to be more enjoyable, we need to sacrifice a little, three-year break to take care of the child, which will make us happy for the rest of the years. In simple terms, where there is will, there is way.